The Central Bank of Nigeria (CBN) has said that following its naira notes redesign and cash swap policy, it has since recovered N1.9 trillion worth of currency previously held outside of the banking system.
The CBN governor Godwin Emefiele disclosed this on Sunday, January 29, 2023, as part of his update following a meeting with President Buhari.
Emefiele noted that the apex bank has been able to reduce the currency outside the banking system to N900 billion from a whopping N2.7 trillion following the announcement of new naira notes.
Recall that President Buhari in November 2022 launched the new naira notes of N200, N500, and N1,000 denominations, which are aimed at combating counterfeiting, improving the effectiveness of monetary policy tools on inflation, as well as mopping excess liquidity.
The statement partly reads; “Ladies and gentlemen, available data at the Central Bank of Nigeria has shown that in 2015, currency in circulation was only N1.4 trillion.
“As of October 2022, currency in circulation had risen to N3.23 trillion; out of which only N500 billion was within the banking industry and N2.7 trillion held permanently in people’s homes.
“Ordinarily, when CBN releases currency into circulation, it is meant to be used and after effluxion of time, it returns to the CBN thereby keeping the volume of currency in circulation under the firm control of the CBN.
“So far and since the commencement of this program, we have collected about N1.9 trillion; leaving us with about N900 billion (N500 billion + N1.9 billion),” he said.
Emefiele also added that the initiative has recorded over 75% success rate, out of the N2.7 trillion held outside the banking system. “Nigerians in the rural areas, villages, the aged and vulnerable have had the opportunity to swap their old notes; leveraging the Agen Naira Swap initiative as well as the CBN Senior staff nationwide sensitization team exercise,” he noted.